{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/730/912/#15-scope-and-scope-exceptions","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"730","topic_title":"Research and Development","subtopic":"730-912","subtopic_title":"Contractors—Federal Government","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"730-912-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 912-10-15, with specific instrument qualifications noted below.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 912-10-15, with specific instrument qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:940165b2722c151526bb4a06a176c3d9be036ea53a8758eff1f26e25ec87d618","downloaded_from":"2026-09-10T01:15:51.169Z","last_downloaded_at":"2026-09-10T01:15:51.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478998","source_sha256":"e5a3b2a1ca079528b85753d1c8a0aab0f42fcaa9445d96a88681d4abdbf2895e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d98c4aacb02eae91980a7d3a706a04d01841839ee8c1573bd5122a769acc7171","downloaded_from":"2026-09-10T01:15:51.169Z","last_downloaded_at":"2026-09-10T01:15:51.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478998","source_sha256":"e5a3b2a1ca079528b85753d1c8a0aab0f42fcaa9445d96a88681d4abdbf2895e"}},{"block":null,"heading":"Instruments","paragraphs":[{"citation":"730-912-15-2","para":"15-2","html":"
This Subtopic applies only to contractual arrangements meeting all of the following conditions:
  1. a
    The activities performed in connection with the contractual arrangement qualify as research and development (see Subtopic 730-10).
  2. b
    The contractor retains a right to the data and results of the research and development activities.
  3. c
    The contractual arrangement obligates the contractor to perform only on a best-efforts basis to achieve the agreed-on objectives of the research and development activity, rather than to deliver a product or service meeting defined performance or other (such as design) specifications.
  4. d
    At the inception of the contract, the contractor and the customer enter into the arrangement with the expectation that costs will be incurred in excess of amounts to be funded. This condition will be met if contractual or other documentation specifically evidences acknowledgment of this expectation by both the contractor and the customer. Implicit in this condition is the existence of significant uncertainty at the date the contractor enters into the arrangement regarding the likelihood of successfully securing follow-on contracts related to the research and development activity.
  5. e
    The research and development arrangement is not combined with other contracts in accordance with the guidance on combining contracts in paragraph 606-10-25-9.
  6. f
    The federal government is the sole or principal expected ultimate customer (including foreign military sales) for the research and development activity or products directly resulting from the research and development activity subject to the arrangements.
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Contractual arrangements meeting all of the conditions in the preceding paragraph differ from contracts with customers addressed in Topic 606 on revenue from contracts with customers. Such activities are research and development as discussed in paragraph 730-10-15-4(c).
","snippet":"Contractual arrangements meeting all of the conditions in the preceding paragraph differ from contracts with customers addressed in Topic 606 on revenue from contracts with customers. Such activities are research and dev…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1195acbb01832a9b5e3230d98f55b087b2bda48f60281ab1e10f19ed59b0bf8e","downloaded_from":"2026-09-10T01:15:51.169Z","last_downloaded_at":"2026-09-10T01:15:51.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478998","source_sha256":"e5a3b2a1ca079528b85753d1c8a0aab0f42fcaa9445d96a88681d4abdbf2895e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0df3395d64c74d6447adc715fac316a07cfe8a7bc55dcfe0c4c6a18f88a179ea","downloaded_from":"2026-09-10T01:15:51.169Z","last_downloaded_at":"2026-09-10T01:15:51.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478998","source_sha256":"e5a3b2a1ca079528b85753d1c8a0aab0f42fcaa9445d96a88681d4abdbf2895e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b481fa568af1c7dec9707d678665abd568ae39ea9e0116a1334149234f79c1b7","downloaded_from":"2026-09-10T01:15:51.169Z","last_downloaded_at":"2026-09-10T01:15:51.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478998","source_sha256":"e5a3b2a1ca079528b85753d1c8a0aab0f42fcaa9445d96a88681d4abdbf2895e"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b481fa568af1c7dec9707d678665abd568ae39ea9e0116a1334149234f79c1b7","downloaded_from":"2026-09-10T01:15:51.169Z","last_downloaded_at":"2026-09-10T01:15:51.169Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478998","source_sha256":"e5a3b2a1ca079528b85753d1c8a0aab0f42fcaa9445d96a88681d4abdbf2895e"}}